A time capsule of the greatest financial mania in the history of mankind, told in real-time by regular folks and patriots. May future generations better understand the madness of crowds, and how power and money corrupt.

It was just announced by CAR(California Association of Realtors) that only 24% of the population of the state of California can afford to buy a median priced home. And this after they cooked the numbers last year using a new formula to get a higher affordability percentage. If you look under the rock where Lereah came from you will also find Leslie Appleton-Young

And they wonder why sales have plummetted...idiots...greedy f-ing idiots.

In the DC area prices are down an average of about 10,000 dollars. That is less than 5%, closer to 2-3%.

There is concern that the 2/28 ARM might cause problems as when people try to refinance they can no longer qualify for a new loan unless they come up with some more cash. The house was worth less than when they began and some will not be able to afford the downpayment to refi. The newer interest rates on subprimes were above 8%. Any downturn in the economy or change in job status might make difficult payments impossible. Others had done cash outs and are mortgaged to the max, instead of having paid down their mortgages and having lower payments compared to income later in life, they owed more than when they first bought the house. Cashout bought jacuzzis are not the same as money in the bank when times get rough. There was a time when that new addition could not be sold for what was spent to build it.